Prof Seema Chakrabarti Preparing books of Accounts…..

Slides:

Advertisements

Similar presentations

Analyzing Transactions into Debit and Credit Parts

Advertisements

Recording Adjusting and Closing Entries for a Service Business

T-account – represent the general ledger –Double-entry bookkeeping Debit – the left side of an account. Credit – the right side of an account. –Assets.

ACCOUNTING PROCEDURE: DOUBLE ENTRY SYSTEM

Learning Objectives After studying this chapter, you should be able to: Use double-entry accounting. Analyze and journalize transactions. Post journal.

Accumulating Accounting Data

ACCT 2110 GENERAL LEDGER. ACCOUNTING EQUATION n Assets = Equities n Assets = Liabilities + Owner’s equity.

14/02/ Presentation on Double Entry System of Book keeping.

ACCOUNTING I Fall Final Exam Study Guide

Accounting – A Financial Information System

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Recording Adjusting Entries Accounting Period Cycle: When a company prepares a.

Chapter 8 Adjusting and Closing Entries

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Recording Adjusting Entries.

30/11/2013YRM, PTC, Mys Quiz on Double Entry System.

ACCOUNTING CYCLE FOR A SERVICE BUSINESS

The Worksheet. The Accounting Cycle Where we are: 1.Journalize (Using the General Journal) –Done 2.Post (To Ledger Accounts – which are also known as.

COMPLETION Accounting Cycle -joemargarciacunanan.

The Accounting Cycle Completed – Adjusting, Closing, and Post-Closing Trial Balance Chapter 5 2.

COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -

AOF Principles of Accounting

Closing the Accounting Cycle

Week 6.  Need to update certain general ledger accounts at the end of the fiscal period.  Reflect “internal” transactions ◦ Supplies used ◦ Prepaid.

Recording Adjusting and Closing Entries for a service business

The closing of the General Ledger

The book (or printout) holding all the accounts

Recording Adjusting Entries Journal entries recorded to update general ledger accounts at the end of a fiscal period are called adjusting entries. TechKnow.

June 27 Chapter 3. 1.Real (permanent) accounts are revenue, expense, and dividend accounts and are periodically closed. 2.Under International Financial.

Completing the Accounting Cycle for a Sole Proprietorship

COMPLETION OF THE ACCOUNTING CYCLE UNIT 4 A work sheet is a multiple-column form that may be used in the adjustment process and in preparing financial.

CHAPTER 8 Recording Adjusting Entries and Closing Entries for a Service Business.

CHAPTER 4 THE BOOKKEEPING PROCESS AND TRANSACTION ANALYSIS McGraw-Hill/Irwin©The McGraw-Hill Companies, Inc., 2002.

LESSON 8-1 Recording Adjusting Entries

Chapter 4 The Accounting Cycle

Accounting Theory.  Accounting Period Cycle ◦ Preparing financial statements at the end of each fiscal period  Adjusting Entries ◦ Journal entries recorded.

Appendix A. think there are two parts to every entry what did the Co. receive why did we receive it OR what did it give up why did we give it up.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 Recording Adjusting and Closing Entries for a Service Business.

1 FINANCIAL ACCOUNTING Week 2: LECTURE 2. 2 Learning Objectives What are accounts and what is the ledger? Understand the principles of double entry. Understand.

PURPOSE OF CLOSING ENTRIES 4 start over  move the company’s net income for a time period to the OE section of the balance sheet 4Start over  measure.

ADJUSTED TRIAL BALANCE

Appendix A. think there are two parts to every entry what did the Co. receive what did it give up OR why did we receive it why did we give it up.

Chapter 8 Recording Adjusting and Closing Entries TEST = 150 Points.

Brief of chapter 1, 2, 3, 4 Sania Wadud.

Objective  The accounting cycle is a series of activities that begins with a transaction and ends with the closing of the books. Because the process.

Accounting December 2, 2014 Chapter 8-2 notes 8-2 WT & OYO Chapter 8-3 notes 8-3 WT & OYO.

Preparing Closing Entries and a Post-Closing Trial Balance

Introduction to Accounting Preparing for a User’s Perspective

LESSON 8-1 Recording Adjusting Entries

LESSON 8-1 Recording Adjusting Entries

Balancing Ledger Accounts

Recording Adjusting and Closing Entries for a Service Business

Recording Adjusting and Closing Entries

Chapter 2: The Recording Process

Accounting cycle Made by: Yashvi Shah.

© 2014 Cengage Learning. All Rights Reserved.

COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -

Chapter 3: The Accounting Information Systems

Objective 6.01 The Accounting Cycle.

Debit Credit Review Questions

Financial Statements Review

LESSON 8-1 Recording Adjusting Entries

Recording Adjusting and Closing Entries

The Accounting Cycle The accounting cycle helps to keep accounting records in an orderly fashion. Collect and verify source documents Analyze each transaction.

LESSON 8-1 5/22/2019 CHAPTER 8 Recording Adjusting Entries and Closing Entries for a Service Business.

ACCOUNTING RECORDS JOURNAL.

LESSON 8-1 Recording Adjusting Entries

Completing the accounting cycle

ACCOUNTING RECORDS JOURNAL.

Financial Reporting, Statements and Analysis

Presentation transcript:

Prof Seema Chakrabarti Preparing books of Accounts…..

Account An account is a book-keeping device to record increases and decreases in each specific asset or liability item. It has two sides divided by a vertical line from the centre, giving it the appearance of alphabet T and is, therefore, referred to as T-account.

Format 2: Ledger Book Format 1: Journal Book Account Books Journal book is a chronological record of transactions and is known as the book of original or first entry. Ledger book provides details (by listing increases as well as decreases) of each account. DateParticularsL.F.Dr. AmountCr. Amount Posting is the process of transferring entry from journal to ledger. DateParticularsJ.F.J.F. Dr. AmountDateParticularsJ. F. Cr. Amount

Debit and Credit Conventionally, the left side of an account is known as the debit (abbreviated Dr.) side and the right side as the credit (abbreviated Cr.) side. The account balance is always of the higher side. It is reasonably safe to assume that debtors have debit balance. Debtors are assets. Therefore, all assets have debit balances. Liabilities are opposite of assets and, therefore, have credit balances. Profits and revenue/income items are liabilities (as payable to the owners), hence, have credit balances. Conversely, expenses and loss items have debit balances.

The Accounting Cycle Consists of Seven Sequential Stages 1. 1.Transaction analysis 2. 2.Recording transactions in journal books 3. 3.Posting them in ledger books 4. 4.Preparation of trial balance 5. 5.Recording adjustment entries in journal book 6. 6.Closing entries in respect of nominal accounts 7. 7.Preparation of financial statements, namely, Profit and loss account, Profit and loss appropriation account and Balance sheet.

Accounting Cycle Accounting cycle refers to the procedural aspects of accounting records. (1) Transaction Analysis (2)Recording in Journal (3) Posting in ledger (4) Preparation of Trial Balance (5) Adjustment Entries (6) Closing entries (7) Preparation of Final Statements

Transaction Analysis…….

It refers to: It refers to: Segregating Monetary transaction from non monetary transaction Segregating Monetary transaction from non monetary transaction Identifying the two accounts involved in the transaction. Identifying the two accounts involved in the transaction. Classifying the accounts into respective categories Classifying the accounts into respective categories

Types of Accounts Personal (Permanent Account) Representa-tive Person Natural PersonArtificial Person Real (Permanent Account) TangibleIntangible Nominal (Temporary Account)

Recording of Journal Entries…….

Journal – A book of Prime Entry Since an accounting transaction relating to business is entered in the accounting records (in accounting terms) for the first time in a journal, it is also called a Book of Prime Entry. Since an accounting transaction relating to business is entered in the accounting records (in accounting terms) for the first time in a journal, it is also called a Book of Prime Entry.

Types of Accounts Personal (Permanent Account) Representa-tive Person Natural PersonArtificial Person Real (Permanent Account) TangibleIntangible Nominal (Temporary Account)

Rules for Debit and Credit Nominal Account Debit all expenses and losses and Credit all revenues, incomes and gains. Personal Account Debit the receiver and Credit the giver. Real Account Debit what comes in and credit what goes out.

And now…..

ITS TIME FOR ASSIGNMENT !!!